Reference no: EM132665113 , Length: 1500 Words
600539 Advanced Business Economics
Please choose one of the titles below and submit your work using eSubmission no later than 4 pm on Thursday 6 August 2020. The required length is 1500 words. This essay counts for 20 per cent of the final module mark. Some guidance on sources of information is provided overleaf, along with the main assessment criteria.
Detailed instructions for essay submission are given in your programme handbook, available on the Faculty Student Hub Canvas site, and elsewhere on that site. There is also information on the penalties for overlong essays and advice on avoiding plagiarism and other forms of academic misconduct.
1. Assess (a) the advantages and disadvantages and (b) the feasibility of introducing competition to residential water customers in the UK.
2. (a) What conditions are necessary for an insurance company to be able to supply motor vehicle insurance successfully (that is, profitably in the long term) to private car owners? Are any of these conditions likely to be more or less difficult to meet for motor vehicle insurance than for other forms of insurance? Explain.
(b) Why do insurance companies offer ‘no claims' discounts? Make reference in your answer to economic theories of insurance markets, such as that of Rothschild and Stiglitz in their 1976 QJE paper.
Title 1
This policy was suggested by the government in a general Treasury document on introducing competition published in November 2015. The government asked Ofwat to "provide an assessment by summer 2016 of the costs and benefits of extending retail competition to household water customers". Ofwat published its "emerging findings" on 18 July 2016 and stakeholder responses to these on 19 September 2016, along with a press statement. Details are as follows:
HM Treasury, A better deal: boosting competition to bring down bills for families and firms, CM 9164, November 2015.
Title 2
The main source here is likely to be lecture and textbook coverage of insurance and how it does (or does not) operate in a competitive market. You will also need to look at the Rothschild and Stiglitz article and/or other similar work.
Attachment:- Advanced Business Economics.rar